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Playboy's circulation dropped 34 percent for the year ending in June, according to the Audit Bureau of Circulations. Playboy's circulation, which included paid subscriptions and single-copy sales, totaled 1.63 million compared with 2.45 million the year before.

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Magazine sales have dropped off as competition from other men's magazines like Maxim has heated up.

The Chicago-based company already stripped its staff and outsourced some tasks in an effort to get back in the black. It expects to post a profit by next year.